New No: 30, Old No: 13,
Subramaniya Swamy Koil Street,
E-Mail: <..clipped for pivacy..>
Sub: Clarification regarding maturity proceeds of UTI-ULIP Plan 1971.
I am 59 years of age. I had joined the above UTI – ULIP Scheme on 25-01-1999 with an annual contribution of Rs.7,500/- for a period of 10 years. Every Year after taking a sum of Rs.510/- towards insurance the balance was invested and units allotted accordingly. No insurance amount was taken for the remaining 3 years as per the scheme. Further they have also allotted only Bonus Units periodically. No dividends so far.
Now the above scheme matured on 25-01-2009,but I am continuing in the scheme to reap the benefit of better NAV and maximizing my returns.
If now, when I redeem the Units, what will be my Tax implications and if at all any,how it is to be calculated.
kindly clarify at your earliest.
The income mentioned by you on redemption of units would be exempt as per the provisions of section 10(35) of the act.